Investar Holding (ISTR) AI Stock Analysis

• Market Cap: $229.43M
• Dividend Yield: 1.8%
• Average Volume (3M): 37.74K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.95
• Revenue Growth: -0.34%
• EPS Growth: 27.03%
• Country: US
• Employees: 329
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 9,825,883
• 10 Day Avg. Volume: 35,828
• 30 Day Avg. Volume: 37,740
• PEG Ratio: 0.49
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 13.98
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 3.93
• Enterprise Value/Ebitda: 8.81
• 1Y Price Target: $29.00
• Price Target Upside: 21.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $24.00 ▲(0.25% Upside)

Investar Holding's overall stock score is driven primarily by its stable financial performance and attractive valuation. The company's strong profitability margins and balanced capital structure are significant strengths. However, the decline in revenue growth and low operating cash flow conversion are notable risks. The technical analysis suggests mixed momentum, with potential for a rebound given the oversold stochastic indicator. The absence of earnings call data and corporate events limits additional insights.

Investar Holding Business Overview & Revenue Model

Company Description

Investar Holding Corporation (ISTR) is a financial services company based in the United States that primarily operates through its wholly-owned subsidiary, Investar Bank. The company is engaged in offering a variety of banking products and services, including commercial and consumer loans, deposit accounts, and wealth management services. Its focus is on serving individuals, small businesses, and commercial clients in its target markets, mainly in Louisiana and Mississippi.

How the Company Makes Money

Investar Holding generates revenue primarily through net interest income, which is earned from the difference between the interest income generated from loans and the interest expense paid on deposits. The company also earns non-interest income from various sources, including service fees from deposit accounts, mortgage origination fees, and investment management fees. Additionally, Investar may engage in strategic partnerships with other financial institutions or service providers to enhance its product offerings and expand its customer base, contributing further to its earnings.

Investar Holding Financial Statement Overview

Summary

Investar Holding demonstrates a stable financial performance with strong profitability margins and a balanced capital structure. However, the significant decline in revenue growth and low operating cash flow conversion are areas of concern. The company should focus on improving revenue growth and enhancing cash flow efficiency to strengthen its financial position further.

Income Statement

Investar Holding shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 39.2%, which is concerning. However, the company maintains a healthy gross profit margin of 58.7% and a net profit margin of 14.4%, indicating profitability. The EBIT and EBITDA margins are stable at 17.3% and 18.8%, respectively, showing operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.42 in the TTM period, indicating moderate leverage. The return on equity is 8.96%, which is reasonable for the industry. The equity ratio stands at 9.31%, suggesting a solid equity base relative to total assets. Overall, the company maintains a balanced approach to debt and equity financing.

Cash Flow

Cash flow analysis reveals a slight growth in free cash flow by 2.3% in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is low at 0.55%, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 94.9%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.22M	156.52M	141.06M	123.18M	107.99M	105.93M
Gross Profit	69.43M	85.89M	84.38M	105.47M	73.38M	74.51M
EBITDA	30.98M	27.50M	24.21M	48.78M	14.90M	21.91M
Net Income	23.07M	20.25M	16.68M	35.71M	8.00M	13.89M
Balance Sheet
Total Assets	2.80B	2.72B	2.82B	2.75B	2.51B	2.32B
Cash, Cash Equivalents and Short-Term Investments	402.81M	34.12M	393.93M	445.23M	452.05M	303.78M
Total Debt	100.60M	101.02M	85.08M	439.74M	135.66M	175.00M
Total Liabilities	2.51B	2.48B	2.59B	2.54B	2.27B	2.08B
Stockholders Equity	295.30M	241.30M	226.77M	215.78M	242.60M	243.28M
Cash Flow
Free Cash Flow	13.26M	15.42M	25.18M	41.69M	30.16M	10.16M
Operating Cash Flow	14.30M	15.93M	26.25M	42.75M	33.48M	17.75M
Investing Cash Flow	-43.74M	90.06M	-73.49M	-350.99M	53.40M	-148.14M
Financing Cash Flow	-73.42M	-110.08M	38.99M	251.46M	-25.21M	121.07M

Investar Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISTR, the sentiment is Positive. The current price of 23.94 is above the 20-day moving average (MA) of 23.49, above the 50-day MA of 23.13, and above the 200-day MA of 20.26, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 43.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISTR.

Investar Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OVLY	72 Outperform	$230.09M	9.63	12.29%	2.07%	1.80%	-5.19%
NWFL	71 Outperform	$247.82M	40.86	3.56%	4.59%	-4.66%	-58.94%
PVBC	70 Neutral	$225.15M	17.09	5.37%	―	-3.46%	133.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FUNC	67 Neutral	$232.33M	9.32	13.36%	2.54%	11.72%	55.87%
FVCB	65 Neutral	$217.88M	10.39	8.87%	0.97%	16.68%	322.32%
ISTR	64 Neutral	$229.43M	10.45	8.53%	1.80%	-0.34%	27.03%

Investar Holding Corporate Events

Investar Holding Finalizes CFO Employment Agreement

On October 31, 2025, Investar Holding Corporation, through Investar Bank, finalized an employment agreement and a salary continuation agreement with John R. Campbell, who will continue as Executive Vice President and CFO. The agreements, effective the same day, include provisions for salary, incentives, and benefits. Additionally, a Split Dollar Life Insurance Agreement with Campbell was amended. Separately, on October 28, 2025, CEO John J. D’Angelo adopted a stock trading plan to exercise expiring stock options and sell a portion of the shares, effective January 26, 2026.

The most recent analyst rating on (ISTR) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Gains Approval for Wichita Falls Merger

Investar Holding Corporation announced on October 30, 2025, that it received shareholder and regulatory approvals for its acquisition of Wichita Falls Bancshares, Inc., the parent company of First National Bank. The merger, initially agreed upon on July 1, 2025, will see Wichita Falls merge into Investar, enhancing its community banking services. The acquisition is expected to close by January 1, 2026, pending customary closing conditions.

The most recent analyst rating on (ISTR) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Corp Reports Q3 2025 Results

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, operates as the holding company for Investar Bank, National Association, providing full banking services across Louisiana, Texas, and Alabama. In its latest earnings report, Investar Holding Corporation announced a net income of $5.7 million for the third quarter of 2025, reflecting an increase from the previous quarter and the same period last year. The company’s strategic focus on optimizing its balance sheet has led to improvements in net interest margin and return on average assets. Key financial highlights include a 13 basis point increase in net interest margin to 3.16%, a 2.1% growth in total loans, and a 1.5% increase in total deposits. Additionally, Investar has made significant strides in its acquisition of Wichita Falls Bancshares, Inc., with regulatory approvals in place and an anticipated closing date around January 1, 2026. Looking ahead, Investar remains committed to enhancing shareholder value through strategic growth initiatives and maintaining a strong financial position.

Investar Holding Faces Lawsuits Over Merger Disclosures

On July 1, 2025, Investar Holding Corporation announced a merger agreement with Wichita Falls Bancshares, Inc., which will see WFB merge into Investar, making Investar the surviving corporation. However, following the announcement, lawsuits were filed by purported stockholders challenging the disclosures in the merger’s Proxy Statement/Prospectus, alleging negligent misrepresentation and concealment. To mitigate potential delays and costs, Investar decided to make supplemental disclosures voluntarily, despite believing the claims are without merit.

The most recent analyst rating on (ISTR) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Investar Holding stock, see the ISTR Stock Forecast page.

Investar Holding Corp.’s Series A Preferred Stock: Potential Risks to Liquidity and Growth

Investar Holding Corp. faces potential financial challenges due to its issuance of Series A Preferred Stock, which could impact its liquidity and financial condition. The terms of this preferred stock restrict the company from paying dividends on common stock unless dividends on the preferred stock are fully paid, potentially limiting cash flow for other corporate purposes. Furthermore, the conversion rights associated with the preferred stock could dilute the ownership of existing common stockholders and affect market prices. These factors may also hinder the company’s ability to secure additional financing, posing a risk to its growth strategies.